Pixy, Thank you for responding to my question so rapidly. Let me give you some more info. about my situation. I am an employee with a firm that, between the firm and myself, the contribution can be 15% of my salary (my contribution can be up to 8% of the 15% total). My tax bracket at this time is ,I think 15%, and I would for see my tax bracket at retirment at 28%. Please keep in mind that I'm not to familiar w/ the tax brackets and their impact on me later. As my salary increases, of course my contriution could increase. There are also plans ,keep your fingers crossed, of a possilbe associate position or partnership.

I also understand that my wife can contribute $2k to a Roth I can contribute $2k to a Roth and I can transfer my office SEP-IRA into a Roth. At this point the total amount could be say for numbers sake $8k to a Roth per year. Now I realize that I will have to pay taxes on my SEP-IRA When I transfer It and will not be able to take any Tax-deductions, but isn't this better than the alternative. The alter. being to put $2K in a Roth for my wife and myself (totaling $4k) and maxing out my SEP at work, but leaving it as a traditional IRA ,taking the deduction and saving taxes now, but paying large sums of taxes on the capital gains later.

I'm sure that you needed more info. to answer this question, but for the time being i did the best i could. I would enjoy a dialog with you on this topic before I start transfering funds and investing. Thank you for your interest. Talk to you soon.

I'm sure how to post a mesage to a certain location so I hope you get this.

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